Scotland’s tax reliefs and rent control end could boost PRS investment
1 year ago | 3 comments
Labour government reject rent controls but claim Renters’ Rights Bill won’t drive landlords out
9:55 AM, 4th March 2025, 1 year ago
9
The Labour government claim they do not support rent controls, but say the Renters’ Rights Bill will not cause landlords to leave.
Baroness Taylor of Stevenage, Lords Minister for Housing and Local Government, made these comments during a debate in the House of Lords on the private rented sector and affordable rents.
An impact assessment by the government on the Renters’ Rights Bill claims some landlords may leave the private rented sector due to additional regulations.
Rent controls mean higher rents
In response to a question by Baroness Grender, whether the government is considering rent controls. Baroness Taylor said rent controls were not the answer to the housing crisis.
Baroness Taylor told the debate: “The Labour government have been clear, we do not support rent controls.
“Heavy-handed rent controls tend to mean higher rents at the start of a tenancy, and they can make it much harder for prospective tenants to find a home. They also encourage the growth of unregulated sub-letting, which can leave the most vulnerable tenants very exposed to higher costs and minimal protections.
“Those rent controls always come at a cost, often in reduced investment in housing supply and quality standards.”
Supply has been consistent for several years
However, when Lord Jamieson from the Conservatives pointed out that landlords are leaving in droves due to the Renters’ Rights Bill, causing supply and demand issues with prices increasing, Baroness Taylor disagreed.
She claimed supply levels are ‘consistent’ and that the Renters’ Rights Bill will not cause landlords to leave.
She said: “We have carefully assessed what the impact of the Renters’ Rights Bill might be, and we do not believe that it will have a significant impact on the supply of private rented housing in the market.
“Supply has been consistent for several years, and we want to maintain that and to make sure that the Renters’ Rights Bill delivers the right balance of support for both landlords and tenants. There are many really good landlords, and we want to give them the help and support they need through the Bill, as well as supporting our tenants.”
Numerous articles on Property118 highlight the shrinking levels of supply in the private rented sector, with Zoopla data showing that, compared to before the pandemic, the typical estate agent now lists 18% fewer homes for rent.
The English Private Landlord Survey (2024), recently released by the government, indicates that 31% of landlords plan to reduce their rented properties over the next two years, up from 22% in 2021.
Watch part of the House of Lords debate below
Tags:
affordable rents, Baroness Taylor of Stevenage, housing policy, housing supply, labour government, landlord exodus, Private Rented Sector, Property market, rent control debate, rent controls, renters rights bill
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Member Since December 2023 - Comments: 1582
9:38 AM, 4th March 2025, About 1 year ago
Not only am I leaving the sector, I am also making sure I sell only to first time buyers with strong local connections. Preferably my own grandchildren.
Member Since December 2023 - Comments: 1582
9:41 AM, 4th March 2025, About 1 year ago
How come they understand that rent controls cause higher rents and reduce investment in the PRS. However, they don’t know that Section 24, over-regulation, unfair CGT and SDLT also stifle investment?
Last one out, turn off the light.
Member Since September 2018 - Comments: 3515 - Articles: 5
10:22 AM, 4th March 2025, About 1 year ago
they can claim what they like. The reality will be entirely different and it wont take long for this to show its effect.
LL’s are already selling (and have sold), and even now LL’s are bracing themselves for what is to come.
Any property coming on to the rental market now should be pitched at the max full market rent level and tenants should be referenced to the hilt.
This is the only way to try and mitigate against what is going to prove to be a make or break moment for the PRS as a whole, if the RRB hits with all its current expectations.
In a perverse way, Labour are forcing private LL’s to be totally business focussed and not allowing us to treat the tenant as anything other than just a ‘£ per unit cost/commodity’ – irony at its best.
The tenant reaps what the government sow.
Member Since May 2018 - Comments: 2019
10:53 AM, 4th March 2025, About 1 year ago
Reply to the comment left by Reluctant Landlord at 04/03/2025 – 10:22
I think that if they’ve understood that rent controls make the situation worse then that’s positive.
The impact assessment does say that some landlords will leave the private sector due to additional regulations.
The overall effect of labour’s current tax policies is to reduce choice and competition in the private rented sector, increase the numbers of incorporated landlords, and drive rents up.
Member Since March 2015 - Comments: 1969 - Articles: 1
11:40 AM, 4th March 2025, About 1 year ago
Not only leaving the industry, but leaving the country too!
Member Since September 2018 - Comments: 3515 - Articles: 5
3:00 PM, 4th March 2025, About 1 year ago
Reply to the comment left by Beaver at 04/03/2025 – 10:53
The overall effect of labour’s current tax policies is to reduce choice and competition in the private rented sector, increase the numbers of incorporated landlords, and drive rents up.
Perfect way to help in a crisis!
Member Since January 2017 - Comments: 110
5:30 PM, 4th March 2025, About 1 year ago
She did not answer the question.
What was her response to the question “landlords ARE leaving at the highest rate ever”
“We don’t think supply will decline based on our research etc”
No – THEY ARE LEAVING ALREADY and it’s not even implemented yet!
Member Since July 2013 - Comments: 754
6:46 PM, 4th March 2025, About 1 year ago
“we want …and to make sure that the Renters’ Rights Bill delivers the right balance of support for both landlords and tenants. “
Really? Exactly what support is proposed for landlords?
Member Since January 2023 - Comments: 317
9:51 PM, 4th March 2025, About 1 year ago
Most of my non P118 LLs contacts are asleep about the impact of RRB but they will certainly wake up when EPCs C kicks in 2028.Then will will see serious exodus BUT by then Reeves will raise CGT back up >28% to pay for UK Peace costs in Ukraine.